Botanical Gardens Nursery has 7,500 shares of stock outstanding at a market price of $18 a share. The earnings per share are $1.23. The firm has total assets of $384,000 and total liabilities of $146,000. Today, the firm is paying a quarterly cash dividend of $.22 a share. What will be the earnings per share after the dividend is paid if the tax rate on dividends is 15 percent?

$1.01

$1.04

$1.23

$1.17

$1.20